| Shareholders’ Equity The Company has authorized one billion shares of common stock and 500,000 shares of preferred stock, each with zero par value. No preferred stock has been issued. At December 31, 2023 and 2022, the Company had approximately 202.5 million shares and 169.0 million shares, respectively, of its common shares in treasury. Treasury stock of $4.9 billion at December 31, 2023 and 2022 is recorded at cost as a reduction of common stock, and treasury stock of $2.7 billion and $1.7 billion at December 31, 2023 and 2022, respectively, is recorded at cost as a reduction of retained earnings. The following tables set forth the changes in AOCI by component and the reclassifications out of AOCI for the years ended December 31, 2023 and 2022: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign Currency Translation Adjustment | | Deferred Gain (Loss) on Hedging Activities | | Pension and
Other
Postretirement
Benefit
Liabilities
Adjustment | | Unrealized Gain (Loss) on Investments | | Accumulated Other Comprehensive Income (Loss) | | | | | | (In millions) | | | | | | Balance at December 31, 2021 | $ | (2,248) | | | $ | 225 | | | $ | (147) | | | $ | (2) | | | $ | (2,172) | | | Other comprehensive income before reclassifications | (609) | | | 268 | | | 117 | | | (12) | | | (236) | | | Gain (loss) on net investment hedges | 328 | | | — | | | — | | | — | | | 328 | | | Amounts reclassified from AOCI | — | | | (352) | | | 23 | | | — | | | (329) | | | Tax effect | (93) | | | 7 | | | (15) | | | 1 | | | (100) | | | Net of tax amount | (374) | | | (77) | | | 125 | | | (11) | | | (337) | | | Balance at December 31, 2022 | $ | (2,622) | | | $ | 148 | | | $ | (22) | | | $ | (13) | | | $ | (2,509) | | | Other comprehensive income before reclassifications | 204 | | | 337 | | | (46) | | | 16 | | | 511 | | | Gain (loss) on net investment hedges | (153) | | | — | | | — | | | — | | | (153) | | | Amounts reclassified from AOCI | — | | | (322) | | | (42) | | | — | | | (364) | | | Tax effect | 32 | | | (5) | | | 2 | | | (1) | | | 28 | | | Net of tax amount | 83 | | | 10 | | | (86) | | | 15 | | | 22 | | | Balance at December 31, 2023 | $ | (2,539) | | | $ | 158 | | | $ | (108) | | | $ | 2 | | | $ | (2,487) | |
| | | | | | | | | | | | | | | | Amounts reclassified from AOCI
Year Ended December 31 | Affected line item in the | | Details about AOCI components | 2023 | 2022 | 2021 | consolidated statement of earnings | | (In millions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | Deferred loss (gain) on hedging activities | | | | | | $ | — | | $ | (1) | | $ | 16 | | Revenues | | (322) | | (351) | | (490) | | Cost of products sold | | | | | | | | | | | | (322) | | (352) | | (474) | | Earnings before income taxes | | 77 | | 62 | | 118 | | Income tax expense | | $ | (245) | | $ | (290) | | $ | (356) | | Net earnings | | Pension liability adjustment | | | | | | Amortization of defined benefit pension items: | | | | | | Prior service losses (credit) | $ | (26) | | $ | (119) | | $ | (77) | | Other (income) expense – net | | Actuarial losses | (16) | | 142 | | 176 | | Other (income) expense – net | | (42) | | 23 | | 99 | | Earnings before income taxes | | (10) | | (4) | | (26) | | Income tax expense (benefit) | | $ | (52) | | $ | 19 | | $ | 73 | | Net earnings | | | | | | | | | | | | | | | | | | | | | | | | | |
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